Telus has reported its Q2 2016 results today and has confidently held its position as Canada’s second largest wireless carrier with 8.4 million subscribers.
As for wireless revenues, Canada’s second largest telecom accumulated $1.6 billion for the quarter, which is an increase of 40 million or 2.6 percent over the same time last year. Wireless revenues now account for 51.6 percent of Telus’ total revenues. Telus’ consolidated operating revenues, which also includes wireline and TV, were up 1.5 percent to $3.1 billion.
Telus notes that its revenues were driven by an increase in “data usage from the continued adoption of smartphones and other data-centric wireless devices, as well as greater use of applications and the expansion of Telus’ LTE network.”
In Q2, the company’s total wireless subscriber base increased 0.9 percent to 8.4 million, with postpaid subscriber base reaching 7.4 million. Total wireless net additions were 40,000 compared to 63,000 a year ago, which reportedly caused by “lower gross additions resulting primarily from the economic slowdown, particularly in Alberta, competitive intensity and the effect of higher handset prices on customer demand as well as higher monthly churn.”
Telus’ monthly postpaid subscriber churn rate rose four basis to 0.90 percent . However, blended monthly churn of postpaid and prepaid improved two basis points to 1.15 percent. Blended ARPU (Average Revenue Per User) jumped 1.4 percent to $64.38, which the carrier is boasting to be its “twenty-third consecutive quarter of year-over-year growth.”
In wireless, data revenue was driven by continued subscriber growth, a larger proportion of higher-rate two-year plans in the revenue mix, a more favourable postpaid subscriber mix and increased data usage from the continued adoption of smartphones and other data-centric wireless devices, as well as greater use of applications and the expansion of TELUS’ LTE network.
Telus’ LTE network reaches 85 percent of the Canadian population and the carrier plans to continue to invest to expand its coverage. In addition, Telus noted that it’s preparing itself “for a more efficient and timely evolution to 5G.”